Forestry Investment in Ireland
Investors can purchase both existing forestry plantations and lands suitable for afforestation. Forestry Services ltd. source both types for investors who can then avail of the afforestation grant and premium scheme and forest road grant administered by the Forest Service of the Department of Agriculture. The investor remains 100% owner of both the land and the crop with management provided by Forestry Services ltd.
The two most important financial incentives for forestry in Ireland are the Afforestation grant scheme and the forestry premium scheme. These schemes were introduced under EU council regulation 2080/92 and support the afforestation of agricultural land. The Tax-Free status attached to forestry in Ireland is also a significant incentive towards investment.
- Tax-Free forestry premium payable for 15 years
- Afforestation grants cover full costs of planting, Free forest establishment
- Plant forests and retain full Basic Payment
- Landowner remains 100% owner of both the land and the crop
- Attractive grants for forest roads, pruning and shaping
- Tax efficient regarding inheritance and particularly agricultural relief
- Tax-Free status of timber sales
Investment Services Provided
We source forestry land for investors and provide advice on all aspects of the scheme.
We source existing forestry plantations for investors.
Full appraisal/valuation service provided.
Management provided based on advice given.
Ireland can be proud of the modern sawmilling and panel board industry now established which competes with the best in the world. This existing market is being underpinned by an increasing demand for biomass from the renewable energy sector. This sector is being driven by Government policy with the following targets:
- 20% reduction in GHG emissions by 2020.
- Overall 44% of electrical consumption from renewables by 2020.
- 12% renewable heat by 2020 (5% by 2010) Currently 3.8%.
- 800 MW of CHP by 2020.
- 10 % transport bio-fuels by 2020.
- The target for Ireland in the European renewable energy directive (2009/28/EC) is 16% share of renewable energy in the final consumption by 2020. The share in 2008 was 4.5%.
The most recent COFORD timber forecast for the Island of Ireland produced the following conclusions:
- All Ireland supply of timber is forecast to increase from 3.8 million M3 at present to 4.7 million M3 by 2020 and 6.5 million M3 by 2028. This increase in supply will come from the private sector.
- Demand by 2020 is forecast at 6.3 million M3 made up of conventional demand of 3.6 million M3 and 2.7 million M3 for biomass.
- Therefore the roundwood supply demand deficit by 2020 is forecasted at almost 2 million M3 with demand far outstripping supply.
Forestry Services Ltd. provide quality independent advise on forestry investments and provide for future management based on advise given. To get further details and potential returns on investing in forestry in Ireland or on lands and forests currently available contact us.
As a dairy farmer, I had little interest in forestry until I purchased land with milk quota in the mid-1990s. Both the milk quota and the forestry have proven good investments. I engaged Forestry Services Ltd to secure the necessary felling licences, construct forest roads and thin the plantations in 2008. The plantations have been second thinned and I am happy with the work that was done and the returns I received from the thinning. I am looking forward to the clearfell and my only regret is that I haven’t got more forestry”
We needed to remove some forestry to expand the rugby club. To do this we needed a Limited Felling Licence from the Forest Service of the Department of Agriculture. Paddy Bruton of Forestry Services Ltd, prepared the licence application for us and explained what was involved very clearly. He then followed up with the Forest Service to get a decision. We got the Licence and are happy with the help we got from Paddy
I planted almost 100 acres in 2000 with Forestry Services Ltd. The plantation is growing very well. A forest road will be constructed in 2015 with thinning scheduled for 2016. Simply, Paddy & the rest of the lads at Forestry Services do what they say.